US judgment opens way for states-wide sports betting

14 May 2018

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The US Supreme Court has made a landmark judgment that could allow states across the country to legalise sports betting wagering.

It has backed a 2014 state ruling in New Jersey which permits sports betting in casinos and at horse racing tracks.

The court also overruled a 1992 federal law prohibiting sports betting gambling.

The news sent the share prices of gambling stocks in the US and UK rising, including Britain's William Hill and Paddy Power.

Several significant US sports betting bodies had opposed the move, including the National Basketball Association.

The National Collegiate Association said it was a hazard to the "stability of athletic competition".

However, Justice Samuel Alito composed on behalf of the Supreme Court: "The legalisation of sports betting gambling needs a crucial policy option, however the choice is not ours to make.

"Congress can control sports betting straight, however if it chooses not to do so, each state is totally free to act on its own."

Winners and losers

Shares in UK-based bookmakers got on the judgment. Paddy Power Betfair's share cost rose 10.5%, 888 Holdings jumped 14%, William Hill's stock gained 9.4% and GVC Holdings rallied 6%.

In the US, shares in Churchill Downs, which owns horse race tracks and gambling establishments rose by 5.73%.

But Wynn Resorts, the Nevada-based hotels and gambling establishment operator, saw its share price fall by 2% on the prospect of competition from new entrants to sports betting.

The Supreme Court choice strikes down the Professional and Amateur sports betting Protection Act (PASPA) of 1992 that restricted sports betting in the majority of states.
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It is only allowed only a few states, including Nevada, home to Las Vegas, Delaware, Montana and Oregon.

Neil Wilson, primary market expert at markets.com, stated that William Hill stands to gain the most following the ruling since it "can roll out sports betting operations pretty quickly from Nevada, where it currently operates and has very strong market existence".

He included that the company likewise has a New Jersey operation "that is primed and ready to begin taking bets within days".

Paddy Power Betfair has an existence in the US through TVG, one of the nation's greatest online horse racing services.

Betfair purchased TVG in 2009 for $50m before it went on to combine with Paddy Power.

Paddy Power Betfair also operates an online gambling establishment and horse race sports betting service in New Jersey.

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